Bursa Malaysia Launches Trading Reminders to Protect Investors

Bursa Malaysia Securities Berhad introduced trading reminders to strengthen investor protection and provide a dynamic trading environment. With the deployment of this new technology, investors will be notified of listed corporations that are participating in unusual trading behavior and should exercise caution.

Bursa Malaysia's attempts to promote an efficient market and shield investors from potentially deceptive trading patterns include the Trading Reminders. These updates will be sent out in tandem with Unusual Market Activity (UMA) inquiries, which elicit public disclosures from publicly traded companies (PLCs) going through notable and inexplicable fluctuations in price or volume.

There has been ongoing volatility in share prices and volumes, despite PLCs often replying that their UMA requests are not based on any new developments. Investors should exercise caution when dealing with equities that continue to exhibit unexpected movements after a company's UMA response. The Trading Reminder flag will explicitly warn investors of such circumstances.

This program is a component of Bursa Malaysia's all-encompassing approach to market regulation. This strategy involves proactive measures such as interacting with participating organizations to resolve issues related to irregular trading. Market designations and alerts are particularly important since they alert investors to equities that may be subject to manipulative or excessive speculation. Bursa Malaysia underscored its resolve to take enforcement action against brokers who tamper with the orderly market.

Parallel to these regulatory actions, Bursa Malaysia is seeing an increase in the number of retail investors, especially from younger generations. Retail investor engagement in the securities market was 22% in Q1 2024; they made up 17% of participants in the FKLI derivatives market and 25% in the FCPO derivatives market. An increasing interest in the local stock market is reflected in these numbers.

Webull, a bargain brokerage, has just started operations in Malaysia, adding to an already active market. The broker has a Capital Markets Services License from the Stocks Commission Malaysia, which allows him to trade stocks and derivatives. In addition to providing reasonable brokerage rates, Webull Malaysia has eliminated commissions for the first 180 days after account creation on trading US-listed equities, Bursa-listed stocks, and exchange-traded funds (ETFs).

Bursa Malaysia's efforts to draw in and safeguard investors, together with the introduction of new firms such as Webull, portend a prosperous future for the Malaysian securities industry. The implementation of trading reminders demonstrates Bursa Malaysia's proactive approach to upholding market integrity and fostering investor trust.

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